ODSHERRED: A unanimous city council in Odsherred decided at an extraordinary meeting on Tuesday evening to support a reconstruction plan for Odsherred Varme, which is expected to end with both the municipality and Nordea must wave goodbye to part of their receivables from the utility company.
Odsherred Varme is part of Odsherred Forsyning, and both companies are undergoing reconstruction after they were unable to pay their bills following a failed district heating project.
The two largest creditors in Odsherred Varme are Nordea and Kommunekredit, and since Kommunekredit's loans are guaranteed by the municipality, Kommunekredit has asked the city council's opinion on a reconstruction plan that the so-called reconstructors have presented.
It is expected that the final restructuring proposal will involve an agreement in which part of the debt is written off, and the repayment of the rest can be postponed. There is still no indication of what the interim dividend will be, and thus how large a part of its receivables the municipality will have to wave goodbye to.
But the plan is sensible, the administration assesses, and that is why the politicians backed Kommunekredit to vote for it and engage in dialogue about it.
Nordea sole creditor in Odsherred Forsyning
There is also a proposal for the reconstruction of Odsherred Forsyning. Here, however, the municipality is not strapped for money, it is largely only Nordea, which is the creditor here and therefore has to approve the plan, which the bank is expected to do.
The administration has also reviewed this reconstruction plan and draws particular attention to the fact that the company's assets are valued at around DKK 18 million. It does not go far when the company has signed a so-called self-debtor guarantee to the bank and is therefore liable for a loan of DKK 680 million. DKK to Odsherred Varme.
Odsherred Varme itself is estimated to have assets worth around DKK 588 million. DKK, primarily in the form of facilities such as pipes and buildings, while the liabilities are just under DKK 1.3 billion. DKK.
Must pay for legal examination yourself
Earlier on Tuesday, the finance committee held a meeting, and in addition to the reconstruction plan, the committee also dealt with the legal investigation of Odsherred Forsyning and the entire process leading up to the financial morass that the city council had previously agreed upon.
The expectation was that Odsherred Forsyning would have to pay for the legal investigation, but after the company has undergone reconstruction, the two reconstructors have announced that the company will only pay for some of the planned points. This applies, among other things, to commingling of funds in the group and management's possible responsibilities.
Other points must be paid by the municipality itself, and the committee recommends that the city council accept this at the next meeting.
It is not yet known what the price will be exactly, but the study will cost DKK 1.5 million. DKK. In addition, advice or legal action may be added later, which may become relevant in the continuation of the investigation.
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
